London's mayor has taken the wraps off a new financial incentive plan to convert empty downtown offices into apartments.
Using his second State of the City address as a backdrop, Mayor Josh Morgan announced on Thursday a series of "bold" new measures, including the new office space redevelopment program, to tackle the city's housing problem.
"I recognize there is more we can do as a municipality, and I am equally committed to ensuring we do everything we can to accelerate local housing development," Morgan said to the crowd of more than 1,200 business and community leaders gathered at RBC Place for the address.
He then announced the new money to convert office space into residential units. The program proposes a grant for each new unit of $20,000 for single bedroom apartments, and $28,000 for apartments of two or more bedrooms. The financial incentive program will be formally introduced at the city's planning and environment committee meeting on February 21.
London's downtown office vacancy rate currently sits at 28.5 per cent, according to figures from Commercial Real Estate Services.
"The opportunity to breathe new life into old buildings is immense," Morgan said.
He then went on to state he would be leveraging the "strong mayor powers" granted to him by the province to redevelop city-owned parking lots in the downtown area.
"A partnership utilizing city land, and the expertise of local developers on strategically selected sites, has the potential to deliver hundreds of new parking spaces, and thousands of new residences in our downtown," said Morgan. "This strategy will contribute to an unprecedented renewal of London’s core over the next decade."
Four of London's "most prominent developers" have also teamed up with Christian-based charity Indwell to retrofit and transform the vacant Elmwood Place Long-Term Care Home into permanent supportive housing with wrap-around services, the mayor announced. The two-storey site, just west of Wharncliffe overlooking the Coves, has the potential to provide more than 40 new units.
"It cannot be stressed enough – what we’re trying to do isn’t simply a question of providing beds or shelter. We’re also providing services -- the types of services that help stabilize those with complex needs, and get them to a point where they can live successfully and independently," said Morgan. "The challenges these individuals face are not solved by shelter alone."
For the second year in a row, Morgan stressed that homelessness is the most pressing challenge facing the city. It was at last year's State of the City address that Morgan announced $25 million donated to the city anonymously by a London family to combat homelessness. Since then the city has moved forward with a unique homeless hub system that has seen two hubs - one operated by Atlohsa and the other by Youth Opportunities Unlimited - open, creating 69 supportive housing units. Re-addressing the $25 million donation that got the ball rolling, Morgan reminded of the matching challenge made when the funds were originally provided.
"If Londoners could raise an additional $5-million, the donors would match that dollar for dollar. As of right now, $4.1-million dollars have been raised," said Morgan. "So, once we hit that target – between the matching funds and the original donation, as a community we will have raised $35-million dollars."
Shifting focus to the city's multi-year budget, which is to be tabled next month, Morgan threw his unequivocal support behind the London Police Service. Police have submitted a business case to modernize the force and hire 189 new police employees at a record cost of $672-million over four years.
"Yes, the cost is significant, and yes it will result in a noticeable, one-time impact on our property tax bills, but the cost of doing nothing – as we’ve all seen – is far greater,' said Morgan.
He based his decision to support the ask on figures that rank London the third most dangerous city when compared to the 12 largest cities in Ontario. He stated that London has the second-fewest officers per capita amongst all single-tier municipalities with a population of at least 100,000 and some of the longest police response times in the province.
"The plan put forward by Chief Truong, and unanimously supported by the Police Services Board, is exceptionally detailed and thorough, and, among other things, pledges to improve 911 response times, make our roads safer, combat violent crime, protect small businesses, and create safer neighbourhoods," said Morgan.
The State of the City address is put on annually by the London Chamber of Commerce. It has been delivered each year by the sitting mayor for 45 years. It offers a look back on what the city has accomplished in the previous year and lays out goals for the future.
Other significant items touched on during this year's address including funding to be announced in the budget to create an overreaching economic development strategy made up of various groups such as the London Economic Development Corporation, local BIAs, TechAlliance, Small Business Centre, the Chamber of Commerce, airport, and post-secondary institutions. As well as investments to further improve public transit.
"While the state of our times may be challenging, the state of our city is strong," Morgan said at the end of his address. The statement was met with a standing ovation from those in attendance.
